BT delivers flat earnings as fibre demand offsets lower revenue.


UK telecoms giant BT Group on Thursday reported flat adjusted earnings as strong demand for its fibre broadband offset lower service revenue.

BT Group

Source: Sharecast

The company said it added 2.2 million fibre connections during the year as part of its accelerated rollout, bringing its take-up rate amongst all major fibre providers to more than 38%.

Core earnings for the year to March were £8.2bn. Adjusted UK service revenue was £15.4bn, down 1% on the back of lower business and consumer voice volumes, with the decline offset by CPI-linked price increases and an improved broadband fibre-to-the-premises mix from its Openreach unit. Group revenue fell 3% to £19.7bn.

The company expects 2026/27 adjusted UK service revenue of £15.1-£15.4bn and adjusted earnings of £8.2-8.3bn.

“BT’s results were light on fireworks, but they did what they needed to do. Revenue remains under pressure, but tight cost control helped cash profits hold up, while free cash flow came in a fraction better than expected," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"That matters most for BT’s investment case from here. The group is now moving past the heaviest phase of its fibre build, and today’s reiteration of a stronger cash flow outlook gives investors a clearer path to a more cash-generative business."

"Openreach remains a key part of this story. Full fibre now reaches 23 million premises, connections are growing, and line losses were slightly better than BT had guided for, though they’re still a reminder that competition is fierce."

"The dividend increase and new policy are helpful signals, but this is still a story about execution. BT needs to prove that years of heavy network investment can translate into sustainable growth, not just better cash flow as spending falls.”

Reporting by Frank Prenesti for Sharecast.com

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